Q: Mr. Strauss – My husband retired from work a few years ago and is bored silly. He has gotten it in his mind to start a business. I don’t like the idea. I think that such endeavors are for a younger generation and he would be better off mentoring young businesspeople. Can you help me talk sense into him?
Becky
A: It is true that people start businesses for all sorts of reasons, although “boredom” is usually not one of them. Far more common is where
- A budding entrepreneur gets a brainstorm and can’t let go of it (or it won’t let go of him!)
- Or she hates working for someone else and wants to be her own boss, or
- Someone lost their job
- Or he needs to make more money
I rarely encounter a reason for starting a business that I don’t like, and even boredom can be a fine impetus if channeled correctly.
That said, I would caution retired people to be extra careful when starting a businessone main reason:
It is a financial and emotional risk.
One thing I know about older workers is that risk-taking, especially financial risk-taking, is not something they usually like. Startups generally take longer and cost more than the new entrepreneur anticipates. The problem for most retired people is that they have less time than their younger counterparts to make up for financial losses should something go wrong.
One other thing the older entrepreneur needs to consider is that startups take a lot of work. The time and physical demands are not insignificant, and the older entrepreneur either may not like – or want – to devote that much energy to the endeavor.
That said, and with those caveatsstated, it must also be said that older entrepreneurs often make terrific entrepreneurs, for a variety of reasons. For starters, they have a lifetime of experience that they can call upon; experience that usually allows them to more easily navigate the choppy waters that is entrepreneurship.
Older entrepreneurs also have other assets that they bring to the table that can tilt the game in their favor:
- Contacts and business associates
- Transferable skills
- An appreciation of both their strengths, and their weaknesses
- Credit worthiness
Carol Gardner is a perfect example of what she calls “encore entrepreneurship.” At the age of 52, getting divorced and over a million dollars in debt, Carol had to do something. A friend told her to “get a shrink or get a dog.” So she got herself a gorgeous and goofy bulldog she named Zelda.
A few weeks later, Carol dressed Zelda up as Santa and entered her into a local pet store Christmas card contest. Zelda won and in the process, Carol ended up creating a whole new category of business.
Today, while pictures and videos of animals dressed up in costumesareubiquitous, back in 1997 when Carol dressed up Zelda, it was revolutionary. Before too long, Zelda was at trade shows and, then, making the rounds on morning TV. Today Zelda Wisdom is multi-million dollar business that not only includes greeting cards, but books, clothing, jewelry, and lots more to come.
When I asked Carol what makes for a great encore entrepreneur,she told me, “A great entrepreneur has to be daring, different, and smart.”
That’s excellent advice for anyone starting a business, no matter their age.
Today’s Tip: A recent report I read indicates that older entrepreneurs like Carol are in fact not that common. Sage (a company with whom I do some work) sent me a copy of their 2015 State of the Startup Report.
According to the Report, 54% of all startups these days are begun by people in the 30-50 age range (Gen X.) Baby Boomers make up less than a third of all startups. That said, the good news is that almost half of all older entrepreneurs find startups to be “somewhat or extremely easy.”
And, interestingly, why did the entrepreneurs surveyed start their own businesses? Here are their main reasons:
- Wanted to be their own boss – 59%
- A passion for a business idea – 48%
- A burning desire to be their own boss – 39%
There’s lots more great stuff there. Find it here.